28 July 2017 - 11:10

Euro to Replace Dollar in Iran’s Foreign Trade Base Currency

Following in the footsteps of numerous world markets, Iran is gradually moving toward replacing the dollar with the euro in its international transactions.
News ID : 72885
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This has made the management of foreign exchange rates a crucial issue, as Iran is aspiring to unify and merge its official foreign currency rate into the one in the free market, as failure to do so is expected to pose various challenges.



Observers contend that lack of stability in prices could be of negative repercussions in the currency market. To tackle the issue, therefore, sophisticated policy-making and management are a key necessity.



Experts also believe that a growth toward a logical level in the euro rate demands to be channeled into a stable path, so that the gap between the official rate and the one in the free market is slowly bridged, ultimately leading into the uni-rate system.



A review of the trend of the value of the euro in the Iranian market in the past couple of months indicates a steady rise of around 2,000 rials.



Meanwhile, at the global level, an increasing number of markets are inclined toward replacing the dollar with the euro. The same tendency has been witnessed in Iran, particularly due to the imposition of illegal western scansions on the country’s economy, with the Central Bank trying to put more in its euro basket, and the country’s other banks conducting their international transactions using the same currency.



A senior Central Bank official has recently said that since the bulk of the revenue in foreign trade has appeared in euros, which is to be used in imports, the base currency in the bank’s upcoming reports will be the European currency. 



Also, CBI Governor Valiollah Seif has expressed hope that the process of unifying the two different euro rates will be completed in the current Iranian year and the policy will be fully implemented.


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